Summary

Financial Statements

We found that the Charter School’s general purpose financial statements fairly presented, in all material respects, its financial position as of June 30, 1997, and the results of its operations for the fiscal year then ended. (See paragraphs 11 through 14.)

Compliance Matters

The results of our tests of compliance indicated that, with respect to the items tested, the Charter School had generally complied with the significant provisions of laws, administrative rules, regulations, contracts and grants, and other guidelines governing those programs, activities, and functions and classes of transactions within the scope of audit except as follows: (See paragraphs 16 through 20.)

• Section 286.011(1), Florida Statutes, provides that all meetings of any board or commission of any agency or authority of any county, municipal corporation, or political subdivision, except as provided in the State Constitution, at which official acts are to be taken are declared to be public meetings open to the public at all times, and no resolution, rule, or formal action shall be considered binding except as taken or made at such meeting. This Section further provides that the board or commission must provide reasonable notice of all meetings. Charter School records disclosed that the Board of The Apple School, Inc., held 11 meetings during the 1996-97 fiscal year; however, Charter School records did not indicate that the Board meetings were advertised or that reasonable notice of the meetings was otherwise provided. (See paragraphs 17 and 18.)
   
• Section 228.056(12)(f), Florida Statutes, provides that a charter school shall employ or contract with employees who have been fingerprinted as provided in Section 231.02, Florida Statutes. Although Charter School procedures provided for evidence of employee fingerprinting to be maintained by the Polk County District School Board, our review of Charter School personnel files and documentation maintained on file at the Polk County District School Board disclosed that documentation was not maintained to evidence that four employees were fingerprinted in accordance with law. (See paragraphs 19 and 20.)

Internal Control

Charter School personnel have established and implemented procedures which generally provide for internal control of Charter School operations; however, our examination of the Charter School’s internal control and its operation disclosed certain deficiencies which we considered to be "reportable conditions." Although none of the reportable conditions noted is considered to be a material weakness in the Charter School’s internal control, these conditions should be promptly addressed by Charter School management. Specific deficiencies noted included the following: (See paragraphs 21 through 27.)

• Established procedures and practices provide guidance for employees in carrying out their duties and responsibilities and in conducting the day-to-day operations of the Charter School. Charter School personnel indicated that operating procedures and practices had not been developed and reduced to writing. Such procedures and practices may be beneficial to address such matters as budget preparation and amendment, accountability and control of tangible personal property, the receipt and deposit of funds, and the acquisition of goods and services including the awarding of contracts. (See paragraphs 24 and 25.)
   
• Improvements were needed in procedures for documenting the verification of the educational background/certification of instructional personnel. Our review of personnel files for instructional personnel hired during the 1996-97 fiscal year disclosed that five of eight teachers hired were not Florida-certified instructors. Charter School personnel indicated that they considered these five teachers as qualified instructors based on their educational backgrounds and/or certifications from other states; however, Charter School personnel files did not include transcripts or other records documenting the verification of the educational background/certification of these teachers. (See paragraphs 26 and 27.)